Analysis of the divergence of EUR / USD on October 26. Bullish divergence can help the euro a little
On the 4-hour chart, the EUR / USD quotes rebounded from the correction level of 76.4% – 1.1422 and resumed the process of falling in the direction of the correctional level of 100.0% – 1.1303. On October 26, a bullish divergence is on the CCI indicator. Its education will allow traders to expect a turn in favor of the European currency and a return to the Fibo level of 76.4%. Reversal of quotes from the correction level of 100.0% will similarly work in favor of the beginning of the pair’s growth.
The Fibo grid was built on extremes from August 15, 2018, and September 24, 2018.
On the 24-hour chart, the pair continues to fall in the direction of the correction level of 127.2% – 1.1285. The quotations from the Fibo level of 127.2% will make it possible to count on a reversal in favor of the EU currency and some growth in the direction of the correction level of 100.0% – 1.1553. Fixing the pair below the Fibo level of 127.2% will increase the chances of continuing falling towards the next correctional level of 161.8% – 1.0941.
The Fib net is built on extremes from November 7, 2017, and February 16, 2018.
Recommendations to traders:
You can make purchases of the EUR / USD currency pair with a target of 1.1422 and a Stop Loss order below the Fibo level of 100.0% if the pair bounces the correction level of 1.1424 or if a bullish divergence with Stop Loss is formed under the last low of this divergence.
The EUR / USD currency pair can be sold now with a target of 1.1303 with a Stop Loss order above the Fibo level of 76.4%, as the pair closed below the correction level of 1.1424 and keep them until a bullish divergence is formed.